Which of the Following Would Indicate an Accurate Statement of Cash

question 69

Multiple Choice

Which of the following would indicate an accurate statement of cash flows?

• A) Net cash flow is equal to marketable securities balance
• B) Net cash flows from financing activities are equal to the change in stockholder's equity
• C) Net cash flow is equal to the ending cash balance
• D) Net cash flow is equal to the change in the cash balance

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Definitions:

Cognitive Schema

A mental framework that helps organize and interpret information, based on past experiences and knowledge.

Cognitive Heuristic

Simple, efficient rules which people often use to form judgments and make decisions; they are mental shortcuts that reduce the cognitive load of making a decision.

Proposition

A statement or assertion that expresses a judgment or opinion.

Prototype

A typical or standard example of a particular concept or category, often used as a reference point for comparing other items in the same category.